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PONS has just completed a contract upgrade—funds are automatically Claimed once every 7 days, and all funds over the following 7 days will be used to buy back and burn PONS, repeating in cycles; the entire process is automated, and anyone can trigger the bot (and receive rewards). This indeed turns deflation from a “promise” into a “program”—around 30% of the total supply (300 million tokens) has already been burned, and the burning continues.
But the other side of the coin is this: PONS has fallen from its early-September ATH of $0.90+ all the way to $0.41 now; deflation has not stopped, but the price has been cut in half—the official documentation itself states: “Burning does not guarantee a price increase.”
Therefore, periodic buybacks improve the “structure” (transparency, predictability, and continuity), but what determines PONS’s later price trend is the “revenue side”—whether anyone is still using the launchpad.
I. What Problem Does the Buyback Mechanism Upgrade Solve?
The flaw of the old mechanism: a buyback rate of “2e per hour”—too slow, leading the community to question the speed of fund claiming and burning.
The three improvements of the new mechanism:
1. Periodic cycles: 7-day Claim + 7-day full burn—buying pressure changes from a “drip” into a “weekly wave”
2. Full automation: bots execute it, and anyone can trigger it—it will not halt because of “team laziness,” and it is transparent and auditable
3. Fund allocation: buyback funds are split into a “current execution pool” and a “reserve pool”—they will not all be burned at once, ensuring a steady stream
This is a typical “mechanism catch-up”—the project team is responding to the community’s doubts about the execution of deflation.
II. How Does Deflation Affect Supply and Demand?
Supply side: the total supply is 1 billion tokens, and around 300 million (30%) have been burned—more are still burned every 7 days. The circulating supply theoretically only decreases and does not increase.
Demand side: buybacks create real buying pressure—the funds come 100% from WETH launch fees + 80% of protocol revenue. Revenue = launchpad usage, and usage = attention.
But here is the key point: deflation is a “slow variable,” while prices are determined by “sentiment + liquidity” in the short term. PONS has demonstrated the reality of deflation with 30% of its supply burned, but also demonstrated that “deflation ≠ price increase” by falling from its ATH to half its value—because during the same period, the 90-day gas exemption expired, Meme interest cooled, competition among launchpads intensified, and the revenue side shrank.
Therefore, deflation only solves “supply”; it cannot solve “demand”—without enough buying, burning more is still just “boiling the frog.”
III. Later Price Trend: Watch Three Variables
Variable One: On-chain revenue (most important). The “source” of buyback funds is protocol revenue. If Pons’s launch volume and trading volume recover → buyback funds grow → deflation accelerates + buying pressure increases (a positive cycle); if they continue to decline → buybacks shrink → deflation becomes a “ritual.” Indicators to watch: weekly number of tokens launched and protocol fee rankings (it once ranked in the top four across the entire network in September).
Variable Two: Price level. The current price is $0.41, versus an ATH of $0.90+—$0.65 (the former support level) has become resistance; $0.35-$0.40 below is the psychological zone. Technically, it is oversold, but oversold ≠ reversal; a catalyst is needed.
Variable Three: Robinhood Chain ecosystem interest. PONS is the “Robinhood Chain launchpad” token—it heats up when the chain heats up and cools down when the chain cools down. Watch overall capital flows on Robinhood Chain and the performance of leading Memes.
IV. Conclusion
Periodic buybacks are a “structural positive” (transparent, automated, and sustainable), but PONS’s core contradiction has never been that “burning is too slow”; it is whether “the launchpad is still making money”—the revenue side determines the power of deflation, interest determines revenue, and revenue determines price.
PONS’s mechanism upgrade deserves praise, but the story of “automatically burning money” is one the crypto industry has heard too many times. Real revenue is the only true belief. #每周来晒 $PONS
A new angle has been discovered 💡